Wahgoshig First Nation

Wahgoshig First Nation
DelShen Therapeutics

DelShen Therapeutics

November 27, 2015 13:00 ET

Wahgoshig First Nation Announces Unique Community Partnership Investment With DelShen Therapeutics

Innovative agreement between First Nation and developer of state-of-the-art Northern Ontario medical marijuana project

KIRKLAND LAKE, ONTARIO--(Marketwired - Nov. 27, 2015) - Wahgoshig First Nation (WFN) and DelShen Therapeutics Corp. (DelShen Therapeutics) today announced that they have signed a first-of-its-kind community benefits agreement that will deliver investment, training and employment benefits to the region.

The WFN have invested $2 million in DelShen Therapeutics in the form of a convertible debenture that meets all of their long-term economic development and investment criteria. The investment will provide further funding for the DelShen Therapeutics operation in the Kirkland Lake area that will produce pharmaceutical grade medical marijuana, subject to Health Canada approvals. The project is expected to create up to 30 jobs at startup and as many as 100 jobs when operating at full capacity.

DelShen Therapeutics has the exclusive Canadian rights to the highest quality pharmaceutical grade medical marijuana strains, developed in the Netherlands, with more than a decade of patient experience and clinical history. Pharmaceutical grade medical marijuana has been demonstrated to be a safe and effective alternative to address a wide range of symptoms and illnesses.

QUOTES

Chief David Babin, Wahgoshig First Nation: "We're excited to be part of a unique agreement that has the potential to deliver a broad range of economic and social benefits for the Wahgoshig First Nation and other aboriginal people in the region. This investment exceeds all of our long-term sustainable economic development criteria and we believe Wahgoshig's investment in DelShen's success will benefit the entire region."

Charlie Angus, MP for Timmins-James Bay: "Partnerships between First Nations and the business community have the potential to deliver the growth and economic diversification we need in Northern Ontario. This agreement recognizes that economic growth needs to come with dialogue and engagement with the community. Bringing a new industry like pharmaceutical grade marijuana to the region gives aboriginal people more opportunities to stay here to work at good, safe jobs."

Dr. Barry Kurtzer, CEO of DelShen Therapeutics: "DelShen Therapeutics is committed to be a positive force wherever we operate and we believe this agreement can provide meaningful benefits both for our business and for the people of the region. The therapeutic benefits of medical marijuana are underutilized in Canada and we look forward to delivering safe and effective alternatives from our Northern Ontario facility that can treat a wide variety of conditions Canadians suffer from today."

QUICK FACTS ABOUT THE AGREEMENT

  • The WFN has invested $2 million in the form of a convertible debenture in the project

  • The investment offers an attractive economic development opportunity for WFN and important funding for DelShen Therapeutics

  • DelShen Therapeutics and WFN are committed to working together to improve the likelihood of employment in the project for WFN members and other aboriginal people in the region, which will have economic benefits for the community and workforce diversity for DelShen Therapeutics. The agreement includes the adoption of employment policies, measures and initiatives to reduce the employment barriers to WFN members and other aboriginal people

  • DelShen Therapeutics and the WFN are committed to working together to establish a training program to increase the capacity for employment among aboriginal people

  • As part of the agreement, DelShen Therapeutics will provide seed capital to support the development of community drug and alcohol prevention and rehabilitation programs

  • The WFN will appoint a member of the Board of Directors of DelShen Therapeutics Corporation to broaden the diversity of the Board and ensure ongoing engagement between DelShen and the First Nations in the region

  • The WFN have agreed to provide ongoing regional First Nations liaison services to DelShen Therapeutics to facilitate further engagement for the company

  • DelShen Therapeutics plans to create about 30 jobs at startup, growing to as many as 100 jobs at full production in a three phase investment of over $18 million in Northern Ontario

  • Pharmaceutical grade medical marijuana has been demonstrated to be a safe and effective alternative to address a wide range of symptoms and illnesses

  • DelShen Therapeutics has the exclusive Canadian rights to the highest quality pharmaceutical grade medical marijuana strains, developed in the Netherlands with more than a decade of patient experience and clinical history.

The Wahgoshig First Nation is nestled in a village near Matheson Ontario; the reserve encompasses 19,239 acres; the north end meets the south shore of Abitibi Lake, which divides North Eastern Ontario from North Western Quebec. The village occupies 70 hectares of flat land adjacent to Blueberry Lake. West of the village the land becomes a perfect habitat for moose, bears, grouse and other game.

DelShen Therapeutics is developing a state of the art pharmaceutical grade medical marijuana project in a repurposed forestry growing operation near Kirkland Lake, Ontario. DelShen Therapeutics operates with the manufacturing and distribution standards and discipline of a pharmaceutical company. The company's project is awaiting notification on the final step toward receiving its production licence.

NOTE: Photos and additional digital materials are available on request

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